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3. Allow Builders to Hire (National Grid approved)
Subcontractors for On-Site Gas Work.
HBRAMA members
received very expensive quotes for gas line installation
work (sometimes multiple times the actual cost) from
National Grid. In addition, the installation timelines were
excessive and resulted in delays in conveying homes. As a
result, National Grid has lost customers as builders often
opt for propane tanks for individual homes.
4. Allow Builders to Install Underground Gas Lines Within
Subdivisions and Developments Before Off-site Work is
Completed.
HBRAMA members stated that this would
expedite completion of the construction of
developments, thereby saving expensive project carrying
costs such as interest and municipal charges.
5. Running Gas Service To Foundations Before Structures
Are Weather Tight.
HBRAMA members stated that, once
again, time savings could be realized if they are allowed to
bring gas service to dwellings prior to the structures being
weather tight.
6. Transparent Pricing.
HBRAMA members expressed
frustration with the range of utility installation pricing,
recognizing that while electric service costs are regulated
by the tariff, gas charges are not. Even the electrical
pricing was difficult for members to locate.
7. Scheduling.
HBRAMA expressed significant dissatisfaction
on the timelines for performing work.
8. Communications.
HBRAMA members expressed concern
about the depth of knowledge by staff at National Grid, as
well as the difficulty in receiving accurate information
about job status.
The committee thenmet with a contingent of nine representatives
from National Grid at the Tewksbury Country Club on May 22,
2013. Brian Schuster, Director of Customer Order Fulfillment
at National Grid, opened the meeting by recognizing the
frustrations of the home building community as well as the
validity of most of the documented case studies presented.
He outlined operational changes that were being implemented
as a result of Process Improvement Teams established at
National Grid to improve service and communication. National
Grid agreed to focus on each of the issues raised, and would
make efforts to accommodate builder concerns.
In a follow-up meeting with our utility committee on October
8, 2013, Mr. Schuster further outlined staffing changes adopted
and now in place. There are three dedicated engineers for
large projects (over 100 units) in Massachusetts. National Grid
undertook an effort to decentralize the engineering function,
which would allow estimates for development projects at an
earlier stage in the process. And National Grid provided the
names of the employees handling gas issues in each locality
to our members, as well as a transparency for their pricing on
electrical work.
Moreover, National Grid is considering longer term issues
related to gas pricing and installation of underground piping as
requested by our association.
In short, our home builders approached National Grid with
a solid plan and specific grievances. In turn, National Grid
has bargained in good faith and is seeking to address those
grievances. In fact, the company has become a member of a
number of our local associations and sends representatives to
monthly meetings.
HBRAMA has established a subcommittee of its Government
Affairs Committee to monitor relations with utility companies
on a long term basis, and is seeking volunteers from each local
association to participate. If builders are experiencing problems
with other utilities, such as NSTAR or other smaller utility
companies, we could follow the same model to establish a
dialogue with them.
Our objective is that, by establishing a high level of ongoing
communication with utility companies, we can seek to greatly
narrow the chasm that had developed over many years with
Massachusetts home builders. We are off to a great start with
National Grid.
Mark Leff is Senior Vice President for Construction Lending at Salem Five Bank,
and is former President of the Home Builders and Remodelers Association
of Massachusetts.
”
We have agreed to continue the dialogue
by meeting semi-annually, and National
Grid has agreed to make presentations to
our local associations at their request.
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